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What is AI?

  • Artificial Intelligence (AI) is the ability of a computer, or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence and discernment.

  • Although there is no AI that can perform the wide variety of tasks an ordinary human can do, some AI can match humans in specific tasks.

  • The ideal characteristic of artificial intelligence is its ability to rationalize and take actions that have the best chance of achieving a specific goal.

  • A subset of AI is Machine Learning (ML).

  • Deep Learning (DL) techniques enable this automatic learning through the absorption of huge amounts of unstructured data such as text, images, or video.

Positive effects of AI adoption

  • Increasing productivity by adopting AI in producing goods and services.

    • AI tools boosts worker productivity.

    • Improved consumer satisfaction.

  • Enhanced Accuracy

  • Improved Decision-Making

  • Continuous Learning and Adaptability

  • Innovation and Discovery in the field of healthcare, science, and technology.

Adverse effects of AI

  • Labour replacement

    • It reduces the labour share, employment and wages. 

    • These adverse effects primarily affect blue-collar workers and individuals with lower levels of education.

    • Causing inequality among workers and possible serious negative impacts on social welfare.

  • AI may intensify competition and deepen the technological divide among firms.

  • Ethical Concerns

  • AI systems heavily rely on data availability and quality. Biased or incomplete data can lead to inaccurate results or reinforce existing biases in decision-making.

  • Vulnerable to cyber attacks and exploitation.

  • Lack of Transparency

  • Initial Investment and Maintenance Costs

Opportunities for India

  • India, being the most populous country, should be on the lookout as any net negative effect on employment can adversely impact the economy. 

  • Regulation on the use of AI is not a bright solution as this would just drive investments and new opportunities away. 

  • Thus, it would be prudent for India to focus more on education and training in AI; take advantage of the demographic dividend and new opportunities that emanate from AI.

  • Governments would have to step up their cyber regulations with respect to the new challenges posed by AI.

  • Need tax capital, as suggested by many experts, to balance the returns from capital and labour to reduce the displacement and distributional effects. 

  • Inclusive approach

  • Encouraging interdisciplinary collaboration and supporting AI research.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: AI Impacts UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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